06/07/2022
With the shifting market we are currently in, many of you may be wondering: how is the rise in Canadian interest rates going to affect my ability to secure a mortgage?
If you are a first time home buyer, or currently thinking of getting into the market, this may affect you. If you are considering a fixed-rate mortgage, know that the minimum for qualifying stress tests has also increased. This means borrows for uninsured mortgages need to meet a minimum qualifying rate of 5.25% of their contract rate plus 2%, whichever is higher.
Here is a link to an amazing article provide by Michelle Mcnally on Realtor.ca involving the rise in interest rates, and what the public should know about this. https://www.realtor.ca/blog/what-you-should-know-about-rising-interest-rates-in-canada/26027/1361
If you are someone who has questions about the rise in interest rates, or need any help navigating this market, I am happy to help!
For the first time since 2018, the Bank of Canada (BoC) increased its target for the mortgage-influencing overnight rate earlier this year, kick-starting what’s predicted to be one of many increases to mortgage rates in 2022. Experts have slightly different takes on where the overnight rate—whic...